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Kickstarter.com is turning startups on their ears

There is a traditional model for starting an Internet business: Organize your idea, create a proof of concept, connect with an angel investor or venture capitalist, yada yada yada, then profit.

But that model is based on so many assumptions it only really works for people with rich uncles (Uncle Joe, why couldn’t you be richer?) or connections to already wildly successful businesses. For the rest of us, we’d better turn a profit before we run out of the money we squeezed out of our piggy banks.

Enter Kickstarter.com.

Kickstarter is a Web community that lets entrepreneurs make pitches to the public for their business ideas, and, in turn, the public can pay into the business toward a fundraising goal. If the business hits their goal in the allotted time, they get the money. If not, they don’t, and the ‘investors’ are refunded their pledge.

It’s a little more complex than that as there are a few caveats and conditions, but that’s the overall spirit of things.

So Kickstarter is rocking the world of startups, particularly in the tech and creative niches. If you have an idea for a restaurant, you’re probably better off looking elsewhere. But if you have an idea for an iPad case or some unique social amalgamation, you’d be a fool to ignore Kickstarter.

Kickstarter’s home page provides a “what’s hot” overview of projects that seem to be gaining momentum. There’s a film about a journey around the world with a set goal of $4,000 (they’ve raised 36 percent of their goal to date). There’s a news satire program about — well, news satire — that has raised 105 percent of their goal. They’ll be getting funded since they exceeded their initial goal.

And then there’s Ouya.

Depending on a few variables, they’re either just below or just above $6 million. Their original goal was $950,000, so they’re 600 percent over what they were aiming for. That is simply amazing.

What is Ouya? It is a video-game system built on the Android operating system. Instead of using it as a phone operating system, the Ouya creators envision using Android as a software that powers a Nintendo Wii or Sony Playstation competitor. It is a box that plugs into your TV and comes with hand-held controllers.

Keep in mind that Ouya is an idea. It is a proof of concept that people are excited about at the mere thought of it becoming a reality, excited enough for 46,000 people to collectively pledge almost $6 million to see it become a reality.

Personally, I’m underwhelmed with Ouya. My phone can play Android games and send hdmi video to my TV. I really don’t see the impact of a dedicated Android game console as being revolutionary.

But I think that speaks directly to the Kickstarter platform. Ouya has successfully gotten 46,000 people to spend an average of $130 on something that doesn’t exist.

So if you’re an entrepreneur and you’re seeing funding as a roadblock, you may need to broaden your horizons.

Or, instead of broadening your horizons, maybe you just need a better pitch video. Because if an Android-based game box can garner $6 million in pre-emptive investments, even average ideas can get the money they need via Kickstarter.

Jesse Bushkar is the CEO of Sysconn New Media Inc. He can be contacted at 912-356-9920 or jesse@sysconn.com.